SG Morning Highlights | Sembcorp Industries Secures 300 MW Wind-Solar Hybrid Project in India

Advancers / Decliners is 66 / 102, with 158.35M securities worth S$353.21M changing hands.

Economists are conflicted over the Monetary Authority of Singapore's (MAS) potential monetary policy adjustments in early 2025 following a noticeable ease in inflation rates in October. While UOB analysts suggest that MAS might reduce the slope of the S$NEER policy band by 50 basis points to align with returning price stability and trend growth, RHB experts anticipate that the current policy settings will be maintained due to a sustainable disinflation trend and controlled inflation risks. October witnessed headline inflation decline to 1.4% year-over-year, and core inflation drop to 2.1%, supporting divergent views on future monetary strategies.

Singapore's headline inflation rate fell to 1.4% year-over-year in October, down from 2.0% in September, largely due to decreased costs in private transport and slower growth in accommodation expenses, as reported by the Department of Statistics (SingStat). The contraction in private transportation inflation deepened slightly to -2.5%, primarily driven by a further decline in car prices. Accommodation inflation also saw a modest reduction. Other sectors such as services, electricity & gas, and retail & other goods experienced slower price increases, contributing to a drop in MAS core inflation to 2.1% from 2.8%. Looking ahead, the Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS) project that both headline and core inflation rates will stabilize, with core inflation expected to remain around 2% through the end of 2024.